Japan has always been the pioneer when it comes to the video games industry. They have the largest market, the most innovative games developers and the most passionate games players. A new console launch in Japan is a major event, one that causes delight and hysteria in equal measure.

The Japanese take their video games very seriously.

It’s for this reason that news of the slump in the Japanese arcade industry should come as a real surprise. The industry is worth a staggering $6.9 billion per year, in line with the country’s obsession with gaming. However it’s taken a massive hit recently, all down the technological advancements in the home entertainment market, and largely due to the Nintebdo Wii.

Nintendo has always had the most passionate fanboys of any of the games console manufacturers, and the Wii is no exception.

During the 1990s the rise of the PlayStation caused serious damage the arcade industries throughout the world, except for Japan. Their love affair with the arcades remained untainted by the advent of Sony’s groundbreaking home console.

However the lure of the Nintendo Wii is proving too tempting for Japan’s otherwise loyal arcade market.

Gene Sato, a 15-year-old games player stated.

Arcades are expensive, noisy and filled with cigarette smoke. Besides, I can stay home and play NBA Live on PlayStation 3.

The Wii has recreated the ‘active’ scene usually kept for the arcade, as players are able to leap around while they play the games.